This week's Mutual Fund stories

The yellow metal has delivered plenty of green to savvy buyers over the past several years. But as an investment, gold is so volatile that owning shares of gold miners or a diversified gold mutual-fund can require an iron stomach. Just this week, for instance, the price of gold tumbled on concern that China's government will have to take measures to slow down its economy, reducing demand for metals.

Then, if you've ever had a problem with a stock trade, check out the Life Savings column about how to win a dispute with your broker. Also, be sure to check out our Stockpicker of the Quarter profile for timely tips on investing in Asia and Latin America. And Thomas Kostigen tells how you can use closed-end funds to diversify your portfolio.

Gold doesn't usually move in lockstep with stocks and bonds. Holding a small amount of this risky investment in fact reduces overall portfolio volatility, so you can enjoy golden years no matter your age.

Jonathan Burton, investments editor

Volatile gold markets demand nerves of steel

With the price of gold up more than 150% since early 2001, it's not surprising that many financial advisers and money managers are adding the yellow metal to their clients' portfolios. But whether that's also the right move for you depends on your taste for adventure. See Mutual Understanding.

INVESTING NEWS & VIEWS

How to win a dispute with your broker

It's one of an investor's worst nightmares: you make the right call on a stock order that would bring a tidy profit only to see your gain evaporate because your broker made an error. See Life Savings.

Profits from a small planet

Like seasoned travelers, savvy international investors know to follow the locals. David Riedel goes further to gain an investment edge: he hires the locals. See full story.

Open-and-shut case

Closed-end funds are increasingly attractive to affluent investors who are using them as diversification tools in their portfolios. See Sophisticated Investor.

Battle of the bond ETFs

ETF mania hasn't hit the bond market yet, but that may be changing. Until last week, exchange-traded fund giant Barclays Global Investors was the exclusive provider of bond ETFs, which is itself a narrow field. Now Vanguard Group, best known for its lineup of index mutual-funds, is stepping into the bond arena. See ETF Investing.

Finding energy's all-stars

The cross-currents hitting the energy sector, from potential crackdowns on tailpipe emissions to oilfield nationalization, are churning up a rich pool of investing ideas for the analysts at T. Rowe Price's New Era Fund. See The Stockpickers.

Fund managers forecast higher inflation

Investors expect global core inflation to be higher in the next 12 months as they continue to favor equities as an asset class, April's fund manager survey from Merrill Lynch showed. See full story.

SEC promises review of 12b-1 fees

Securities regulators are planning to look at a sales fee charged by mutual funds that is now "barely recognizable" from its original form and is unfriendly to investors, the chairman of the Securities and Exchange Commission said. See full story.

Fidelity Investments streamlines operations

Fidelity Investments moved to streamline product distribution and other business units and said that Vice Chairman and Chief Operating Officer Robert Reynolds would retire after 23 years with the mutual-fund giant. See full story.

Strong inflows sets stage for asset managers

Even with stock markets correcting in February, profits at U.S. asset managers aren't expected to suffer in the first quarter. In fact, two of the industry's heavyweights are projected to produce healthy double-digit gains when they kick-off a new round of quarterly earnings reports next week. See full story.

COMMENTARY

Year of the ETF?

Exchange-traded funds are proliferating at a dizzying rate. By the end of this year there could be 1,000 ETFs with double or even triple the assets this fast-growing industry now has under wraps. See Bill Donoghue.

Survival of the fittest

The mutual fund industry is a survival-of-the-fittest world where management companies frequently kill off their weakest offspring by merging them into their best and healthiest issues. So when one of the industry's biggest players announces plans to merge two issues into sister funds, it's no big deal. See Chuck Jaffe.

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